UAE Excise Tax – Extension of Due Date

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Extending the Tax Period for Excise Tax Registrants

Considering the urgent and exceptional nature of developments and challenges that resulted from precautionary measures implemented in the UAE to limit spread of novel Coronavirus (COVID-19), the Federal Tax Authority (‘FTA’) has sought to ease tax burdens for its excise tax registered persons. Accordingly, as a commitment to support excise tax registrants and to ensure timely fulfilment of compliance obligations by them, the FTA has introduced following measures:

• Extension of tax period commencing on March 1, 2020 for one month. That is, the tax period shall now end on April 30, 2020;
• Accordingly, tax period shall now cover the months of March 2020 and April 2020;

Summary of Revised Obligations as a Result of Extension:

As a consequence, the reporting obligations for excise tax registered persons stand revised as under:

• Excise tax registered person is required to file two separate tax returns – for March 2020 and April 2020;
• Due date for filing both these tax returns shall be May 17, 2020;
• Payable tax under both these tax returns is required to be deposited with the FTA by May 17, 2020.

PKF Comments:

• The above relief by way of an extension shall allow excise tax registered businesses sufficient time to comply with their tax obligations;
• Further, deferment of the due date to make payment of excise tax for March, 2020 until May 17, 2020 (instead of erstwhile April 15, 2020) shall provide relief to the business from cash flow perspective in these testing times;

Any queries on Excise Tax and related compliances?


You may email us or can contact any of our team members relating to your queries on this subject:

Stany Pereira Sarika Dhameja Ronak Desai
Managing Partner Director – Tax Services Assistant Manager – Tax Services
stany@pkfuae.com sdhameja@pkfuae.com rdesai@pkfuae.com

Disclaimer:

This document has been prepared as a general guide. It is not substitute for professional advice. Neither PKF UAE nor its partners or employees accept any responsibility for loss or damage incurred as a result of acting or refraining from acting upon anything contained in or omitted from this document. If you wish to be included on the regular mailing list for this newsletter, forward your request and a mailing address to Ms. Greeta Creado, P O Box 13094, Dubai, UAE. Email: gcreado@pkfuae.com
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